Required information [The following information applies to the questions displayed below.] d Kinnear Plastics manufactures various components for the aircraft and marine industry. Kinnear buys plastic from two vendors: Tappan Corporation and Hill Enterprises. Kinnear chooses the vendor based on price. Once the plastic is received, it is inspected to ensure that it is suitable for production. Plastic that is deemed unsuitable is disposed of. The controller at Kinnear collected the following information on purchases for the past year: Tappan Hill 6,000 10,000 120 600 Total purchases (tons) Plastic discarded The purchasing manager has just received bids on an order for 290 tons of plastic from both Tappan and Hill. Tappan bid $1,813 and Hill bid $1,786 per ton. -quired: Assume all else remains the same. What bid by Tappan would make Kinnear indifferent between buying from Tappan or Hill? (Do t round intermediate calculations. Round your answer to 2 decimal places.)
Required information [The following information applies to the questions displayed below.] d Kinnear Plastics manufactures various components for the aircraft and marine industry. Kinnear buys plastic from two vendors: Tappan Corporation and Hill Enterprises. Kinnear chooses the vendor based on price. Once the plastic is received, it is inspected to ensure that it is suitable for production. Plastic that is deemed unsuitable is disposed of. The controller at Kinnear collected the following information on purchases for the past year: Tappan Hill 6,000 10,000 120 600 Total purchases (tons) Plastic discarded The purchasing manager has just received bids on an order for 290 tons of plastic from both Tappan and Hill. Tappan bid $1,813 and Hill bid $1,786 per ton. -quired: Assume all else remains the same. What bid by Tappan would make Kinnear indifferent between buying from Tappan or Hill? (Do t round intermediate calculations. Round your answer to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
[The following information applies to the questions displayed below.]
Bid
Kinnear Plastics manufactures various components for the aircraft and marine industry. Kinnear buys plastic from two
vendors: Tappan Corporation and Hill Enterprises. Kinnear chooses the vendor based on price. Once the plastic is
received, it is inspected to ensure that it is suitable for production. Plastic that is deemed unsuitable is disposed of.
The controller at Kinnear collected the following information on purchases for the past year:
Hill
10,000
600
Total purchases (tons)
Plastic discarded
Tappan
6,000
120
The purchasing manager has just received bids on an order for 290 tons of plastic from both Tappan and Hill. Tappan bid
$1,813 and Hill bid $1,786 per ton.
Required:
a. Assume all else remains the same. What bid by Tappan would make Kinnear indifferent between buying from Tappan or Hill? (Do
not round intermediate calculations. Round your answer to 2 decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e55b08f-5cc5-47f4-9ff8-20e0d5342c62%2F1841d937-19ab-4050-b89d-2cc6b7a6f804%2Fc5cia4l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
Bid
Kinnear Plastics manufactures various components for the aircraft and marine industry. Kinnear buys plastic from two
vendors: Tappan Corporation and Hill Enterprises. Kinnear chooses the vendor based on price. Once the plastic is
received, it is inspected to ensure that it is suitable for production. Plastic that is deemed unsuitable is disposed of.
The controller at Kinnear collected the following information on purchases for the past year:
Hill
10,000
600
Total purchases (tons)
Plastic discarded
Tappan
6,000
120
The purchasing manager has just received bids on an order for 290 tons of plastic from both Tappan and Hill. Tappan bid
$1,813 and Hill bid $1,786 per ton.
Required:
a. Assume all else remains the same. What bid by Tappan would make Kinnear indifferent between buying from Tappan or Hill? (Do
not round intermediate calculations. Round your answer to 2 decimal places.)
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